Uranium Resources, Inc. (NASDAQ: URRE) (“URI” or the “Company”), today
announced that it has filed a proxy statement to seek shareholder
approval of a reverse stock split. The Company also announced the
closing of $5 million in bridge financing (“Bridge Financing”) with
Resource Capital Fund V L.P. (“RCF”) and the Company's plan to undertake
a shareholder rights offering (“Rights Offering”) in 2013.

In order to regain compliance with NASDAQ's minimum $1.00 bid price
requirement and maintain the Company's NASDAQ listing, URI's Board has
unanimously approved a charter amendment to conduct a reverse stock
split.

On December 17, 2012, URI filed definitive proxy materials with the SEC
seeking shareholder approval of the charter amendment that will permit
it to conduct a reverse stock split of the Company's issued and
outstanding common stock, by a ratio of not less than 1-for-5 and not
more than 1-for-15, with the final ratio to be determined by the
Company's Board following shareholder approval. A special meeting of
shareholders has been scheduled for January 14, 2013 to vote on the
reverse split.

URI Secures Bridge Financing Facility

The $5 million Bridge Financing, which carries an annualized interest
rate of 10%, will be used for the advancement of URI's strategic
projects and general working capital requirements.

Terence J. Cryan, Interim President and CEO of URI commented, “As our
largest shareholder, we believe RCF's commitment to URI with additional
funds is validation of the inherent value of URI's strategy and its
assets. Our near-term priorities are focused on those efforts that will
de-risk and improve the economics of our Churchrock project, as well as
maintain our restoration activities in Texas. Our objective is to fully
realize the value of our assets in the ground.”

The Bridge Financing contains customary representations, warranties,
covenants, security provisions and events of default, and requires the
Company to remain listed on the NASDAQ stock market. It matures on the
earlier of the closing of the planned Rights Offering or June 28, 2013.

Rights Offering to Existing Shareholders

URI plans to conduct a Rights Offering within 60 days of shareholder
approval of the reverse split. The Rights Offering will provide holders
of the Company's common stock a non-transferrable right to purchase
additional shares in proportion with the number of shares held at the
record date for the offering, which the Company's Board will set
following shareholder approval of the reverse split. The Rights Offering
is a means to raise no greater than $13 million in additional capital to
support the Company's activities.

By offering to URI shareholders the rights to purchase additional shares
of common stock on a pro-rata basis, the Rights Offering permits
shareholders to maintain their percentage ownership in the Company.

The Company and RCF also entered into a standby purchase agreement
pursuant to which RCF agreed, subject to certain conditions, to
participate in the proposed Rights Offering and to exercise rights so
that total proceeds to the Company will equal at least $8.0 million.

This news release does not constitute an offer of any securities for
sale or a solicitation of an offer to buy any securities.

About Uranium Resources, Inc.

Uranium Resources Inc. explores for, develops and mines uranium. Since
its incorporation in 1977, URI has produced over 8 million pounds of
uranium by in-situ recovery (ISR) methods in the state of Texas. URI has
over 206,600 acres of uranium mineral holdings and 152.9 million pounds
of in-place mineralized uranium material in New Mexico and an NRC
license to produce up to 1 million pounds of uranium per year. URI has
an additional 1.3 million pounds of in-place mineralized uranium
material in Texas and South Dakota. The Company acquired these
properties over the past 20 years along with an extensive information
database of historic drill hole logs, assay certificates, maps and
technical reports.

URI's strategy is to fully develop its resource base in New Mexico and
Texas, expand its asset base both within and outside of New Mexico and
Texas, and partner with larger mining companies that have undeveloped
uranium assets or with junior mining companies that do not have the
mining experience of URI, as well as provide restoration expertise to
those that require the capability or lack the proficiency.

Uranium Resources routinely posts news and other information about the
Company on its website at www.uraniumresources.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to risks, uncertainties and assumptions and are
identified by words such as “expects,” “estimates,” “projects,”
“anticipates,” “believes,” “could,” and other similar words. All
statements addressing operating performance, events, or developments
that the Company expects or anticipates will occur in the future,
including, but not limited to, statements relating to the reverse stock
split, the Bridge Financing, the Rights Offering, RCF's participation in
the Rights Offering, mineralized uranium materials and production
capacity of mining operations planned for properties in South Texas and
New Mexico are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important risk
factors and uncertainties. These risk factors and uncertainties include,
but are not limited to, whether the Company's shareholders approve the
charter amendment, whether the Company initiates and completes the
Rights Offering, the Company's compliance with the terms and conditions
set forth in the Bridge Financing documents, the spot price and
long-term contract price of uranium, weather conditions, operating
conditions at the Company's mining projects, government regulation of
the mining industry and the nuclear power industry, world-wide uranium
supply and demand, availability of capital, timely receipt of mining and
other permits from regulatory agents and other factors which are more
fully described in the Company's documents filed with the Securities and
Exchange Commission. Should one or more of these risks or uncertainties
materialize, or should any of the Company's underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on the
Company's forward-looking statements. Except as required by law, the
Company disclaims any obligation to update or publicly announce any
revisions to any of the forward-looking statements contained in this
news release.